The current situation in Greece is a mixed blessing for the Canadian currency. Forex traders seek stable and safe currencies as they run from the euro and associated risks. The Canadian dollar is a good choice as it is supported by good fundamentals in Canada and the United States, the biggest trading partner of Canada.

On the negative side, the loonie (as Canada’s currency is nicknamed because of the image of an aquatic bird on a C$1 coin) is tied to economic growth and the problems of Europe have a negative impact on growth prospects. The European debt crisis has shaken the entire world and Canada is not immune. Prices for commodities are falling and Canada’s currency depends on performance of raw materials. In the end, the future of the loonie is uncertain as the outcome of Europe’s story and its influence on global markets is unclear.

USD/CAD was up from 1.0036 to 1.0066 as of 22:41 GMT today, while the intraday high of 1.0072 was the highest since January 25. EUR/CAD fell from 1.2867 to 1.2816, touching 1.2781 intraday — the lowest level since January 12, 2011. CAD/JPY was up from 79.51 to 80.09 before retreating to 79.67.

source from: topforexnews

The S&P 500 fell for the third straight session as attempts to form a government in Greece fell apart, raising the possibility of a rejection of the bailout terms spelled out by the European Unionfor the fiscally troubled nation.

After holding near the unchanged mark for much of the session, stocks moved lower in the absence of positive news to turn the tide of negative sentiment.

“Those who are looking for a little bit of a bounce off the last eight trading sessions lost their nerve because there is really nothing out there to indicate the broader story has changed,” said Peter Kenny, managing director at Knight Capital in Jersey City, New Jersey.

The concerns about upheaval in the euro zone and its effect on the global economy weighed on energy and materials stocks, with U.S. crude down for the third straight day. The S&P energy index <.GSPE> and the S&P materials index <.GSPM> each dropped 1.5 percent.

Quarterly results helped boost retailers TJX , up 6.9 percent at $42.45, and Dick’s Sporting Goods , up 5.9 percent at $50.05.

U.S. retail sales rose 0.1 percent in April, slightly below expectations. However, details in the Commerce Department’s report indicating underlying strength in demand and a rebound in manufacturing activity in New York State calmed concerns that the economy was stalling.

The declines on Tuesday pushed the S&P 500 down more than 6 percent from its early April high, leaving some investors optimistic that the pullback may be nearing an end as stock prices become more attractive.

“We could go a little lower, but not much lower. It’s hard to ignore the fundamentals – and clearly there are some good fundamentals and prices,” said Mark Martiak, senior wealth strategist at Premier/First Allied Securities in New York.

Data showing an index of home builders’ sentiment at a five-year high in May helped lift the sector’s shares. The PHLX housing index <.HGX> advanced 0.6 percent. But Home Depot shares lost 2.4 percent to $48.67 and ranked as the biggest drag on the Dow after the home improvement retailer posted quarterly sales that fell short of Wall Street’s expectations.

The Dow Jones industrial average <.DJI> dropped 63.35 points, or 0.50 percent, to close at 12,632.00. The Standard & Poor’s 500 Index <.SPX> lost 7.69 points, or 0.57 percent, to 1,330.66. The Nasdaq Composite Index <.IXIC> fell 8.82 points, or 0.30 percent, to close at 2,893.76.

After the closing bell, shares of J.C. Penney Co Inc slumped 11 percent to $29.66 following the retailer’s release of quarterly results and same-store sales that fell short of Wall Street’s expectations. The company also said it would discontinue its quarterly dividend of 20 cents per share.

JPMorgan Chase & Co rose 1.3 percent to $36.24, mostly unchanged this week after falling more than 11 percent last week after disclosing a trading loss of at least $2 billion. Pressure mounted on the bank to reclaim some of the millions of dollars it paid to the executives who oversaw the wrong-way trades.

Avon Products Inc tumbled 9.7 percent to $18.71 after Coty Inc withdrew its $10.7 billion takeover bid for the company, saying it had missed a deadline to start discussions.

Chesapeake Energy Corp shares dropped as much as 7.8 percent to $14.31, their lowest since March 2009, after a credit rating downgrade and news that the natural gas producer will increase its borrowing to $4 billion from the planned $3 billion as it faces a liquidity crunch. Chesapeake shares finished the session down 5.6 percent at $14.65.

Facebook Inc increased the price range of its initial public offering, aiming to raise more than $12 billion and giving the world’s largest social network a valuation potentially exceeding $100 billion.

The indications of high demand for Facebook’s IPO prompted some buyers to snap up other social media companies’ shares, such as online game maker Zynga Inc , up 7.7 percent at $8.56.

Volume was active with about 7.28 billion shares traded on the New York Stock Exchange, NYSE Amex and Nasdaq, above the daily average of 6.78 billion.

Declining stocks outnumbered advancing ones on the NYSE by a ratio of nearly 2 to 1, while on the Nasdaq, about 14 stocks fell for every 11 that rose.

source from: yahoo

The expected weakness on Wall Street chimes with fresh 2012 lows in Europe, where the FTSEurofirst 300 <.FTEU3> traded down 0.9 percent, and in Asia <.N225> as investors fret about Greece.

Greek political leaders will attempt on Wednesday to form a caretaker government to take the country to a second election in just over a month, with its euro membership at stake and its president speaking of “fear that could develop into panic” at its banks.

Global mining shares have been hit after BHP Billiton said it expects commodity markets to cool further and that investors have lost confidence in the longer-term health of the global economy.

Wednesday’s data diary features housing starts and building permits for April at 1230 GMT, followed by industrial production figures at 1315 GMT, with both expected to show an improvement from the previous month.

The minutes from the Federal Reserve’s April meeting, due at 1800 GMT, will be scrutinized for any discussion on the health of the labor market as investors debate the likelihood of more stimulus measures.

A fairly thin earnings calendar includes first quarter figures from the farm equipment maker Deere , Victoria’s Secret parent Limited Brands Inc , office supply chain Staples and retail giant Target .

The retailers will be in the spotlight after J.C. Penney posted a steeper-than-expected drop in first quarter sales late on Tuesday, sending its shares down nearly 13 percent after the bell.

U.S. stocks fell for the eighth day in the past 10 on Tuesday. The Dow Jones industrial average <.DJI> dropped 63.35 points, or 0.50 percent, to close at 12,632.00. The Standard & Poor’s 500 Index <.SPX> lost 7.69 points, or 0.57 percent, to 1,330.66. The Nasdaq Composite Index <.IXIC> fell 8.82 points, or 0.30 percent, to close at 2,893.76.

Facebook Inc will increase the size of its initial public offering by 25 percent, a source familiar with the matter said, and could raise as much as $16 billion as strong investor demand for a share of the No.1 social network trumps debate about the company’s long-term potential to make money.

The news comes as General Motors Co plans to stop advertising on Facebook, with a source familiar with the matter saying the automaker had decided the ads had little impact on consumers.

General Electric Co is buying two mining equipment firms, Australia’s Industrea Ltd for $700 million as well as a privately held U.S. company, as it seeks to boost its presence in a $61 billion industry.

NYSE Euronext is out of the race to buy the London Metal Exchange, after its reported 800 million pound ($1.28 billion) bid was deemed too low.

The FBI has opened an inquiry into the multibillion-dollar trading losses at JPMorgan Chase , stepping up pressure on the bank after key U.S. agencies said they were looking into high-risk trades that first drew regulators’ attention last month.

source from: yahoo

United Parcel Service Inc., the world’s largest package company, said net income rose to $970 million, or $1 per share, from $915 million, or 91 cents per share.

Revenue rose 4.4 percent to $13.14 billion.

Analysts’ expected net income of $1.02 per share and revenue of $13.3 billion, according to FactSet.

Much of UPS’ profit came from domestic shipping, where revenue was up 6.1 percent on higher volume and prices. But that was offset by a shift toward lighter and slower shipping methods.

UPS, which is based in Atlanta, said online sales drove some of its speedy shipping options, including next day air. Ground volume rose 4 percent on demand for lightweight, less expensive shipments.

International revenue was up just 2.3 percent to $2.97 billion, but revenue per package fell. Asian exports have slowed as China’s economy cools, and some European countries slide into recession. The international business, which had been racking up double-digit quarterly sales gains, has been slowing since last summer.

UPS said part of the reason that shipments from Asia to the U.S. are down is that some businesses are locating factories in Mexico or other countries closer to home, to keep a tighter handle on inventory.

UPS and its smaller rival FedEx Corp. tend to be indicators of broader economic health because they move millions of packages for businesses and consumers every day.

In morning trading, UPS shares fell $2.30, or 2.9 percent, to $77.35.

source from: yahoo

Momentum began to pick up speed during the first months of the year, said CEO Frits van Paasschen, and Starwood is “very bullish” about long-term prospects.

“Going into the year, we said that 2012 was more likely to surprise on the upside,” said Paasschen. “So far, that is playing out.”

Starwood earned $128 million, or 65 cents per share. That’s up from $28 million, or 14 cents per share, last year.

Excluding an $11 million legal reserve reduction and a $7 million loss on a hotel sale, earnings from continuing operations were 63 cents per share. That is a dime better per-share than analysts had forecast, according to a poll by FactSet, and it beat on revenue, too, which rose 32 percent to $1.72 billion.

The prior-year period included a $33 million charge, mostly from a minority investment in a Tokyo hotel following the devastating earthquake in Japan.

Global revenue per available room for hotels open at least a year increased 5.8 percent. Systemwide revenue per available room for hotels in North America open at least a year climbed 7.1 percent.

Revenue per available room is a key gauge of a hotel operator’s health.

Total vacation ownership revenue rose 3.4 percent to $152 million in the quarter, with the number of contracts signed up 3.6 percent. Residential revenue surged to $362 million from $6 million, which accounts for the inclusion of revenue from its massive St. Regis Bal Harbour project.

“Seemingly unstoppable demographic and economic trends are fueling global growth in demand for high end travel,” said Paasschen. “Rising wealth around the world and globally interconnected businesses will lead to ever more travel.”

Starwood expects earnings this year of $2.35 to $2.46 per share and second-quarter earnings of 58 cents to 62 cents per share. Both forecasts include the Bal Harbour project.

However, Wall Street had been predicting annual earnings of $2.69 per share and 60 cents per share for the second quarter.

Its shares slipped 11 cents to $57.51 in morning trading. Its shares are still near the upper end of their 52-week range of $35.78 to $61.70.

Starwood Hotels & Resorts Worldwide Inc., which runs hotels under the St. Regis, Westin, Sheraton and other brands, is based in Stamford, Conn. It has 1,103 properties in almost 100 countries.

source from: yahoo

Saxo Bank

Saxo Bank, the specialist in online trading and investing, today announces the opening of its new office in Cyprus which will provide Cypriot investors with access to international financial markets. Vitali Boutbaev has been appointed as Head of Saxo Bank A/S Cyprus and will be responsible for running the business and bringing new clients on board. He also remains responsible for all Central and Eastern European activities in the Bank.

source from: forexbrokerz

FX Solutions, a leading US forex broker, announced the launch of Android version of its MT4 platform just a week after Metaquotes rolled out MT4 for Andorid. Now you can access your MetaTrader 4 account with FxSol from wherever you are, whenever you want by staying abreast of the latest developments in the forex markets direct from your MetaTrader 4 Android App.

source from: forexbrokerz

Investors will assess whether slower growth is priced into the U.S. stock market, or if the S&P 500′s retreat from Monday’s four-year high is the start of a larger decline – if results disappoint.

After the S&P 500′s rise of about 30 percent since October, there is concern that buying interest is not strong enough to drive further gains, particularly after soft March U.S. employment figures were released on Friday.

“It seems like we’re hitting resistance,” said Jack Ablin, chief investment officer of Harris Private Bank in Chicago. “I think the market will grind higher, but it will be at a much slower pace. Earnings and jobs aren’t helping.”

Friday’s nonfarm payrolls report was a disappointment, with just 120,000 jobs added in March, short of expectations for a gain of 203,000 jobs. Stock futures fell 1 percent in a shortened session, with the cash market closed entirely.

Fund managers will look for earnings to offer insight into how companies are faring amid mixed economic indicators and a resurgence of concerns about Europe. Strong results could extend the multi-month rally while weak ones could provide a catalyst for further declines.

“If management commentary indicates that business is holding up despite the apparent slowing of European economies, that would be very encouraging for stocks,” said John Carey, portfolio manager at Pioneer Investment Management in Boston, who helps oversee about $260 billion.

“On the other hand, if orders are dropping or consumer spending doesn’t appear sustainable, that could lead to some downward pricing action and earnings revisions.”

A TIME FOR CAUTION

The latest trends haven’t been encouraging. Analysts have trimmed estimates, management teams have grown more cautious, and overall growth rates have fallen sharply.

S&P 500 companies’ earnings are seen rising 3.2 percent in the first quarter, according toThomson Reuters data, compared with growth of 9.2 percent in the fourth quarter and a jump of almost 19 percent in the first quarter of 2011 over the year-ago period.

Analysts have been cutting estimates steadily in the last few months, but the ratio of cuts to increases leveled off in March, Bank of America-Merrill Lynch wrote in a recent note. That indicates “analysts are still cutting estimates, but at a decreasing rate.”

Bank of America-Merrill Lynch also pointed out that corporate management teams were becoming more cautious relative to expectations as well. Overall, data from StarMine, a unit of Thomson Reuters, shows most sectors with declining estimates, particularly materials and telecom stocks.

“We feel it is too early to switch to a positive short-term signal, given worrisome trends in guidance and sales revisions,” Bank of America-Merrill Lynch wrote to clients.

SanDisk Corp warned on Tuesday that weak demand would hurt its revenue and margins, an outlook that sparked a steep dive in the flash-memory maker’s stock and hurt chip makers.

On the positive side, Bed Bath & Beyond posted better-than-expected results late Wednesday, driving its stock to an all-time high on Thursday.

Alcoa Inc will mark the start of the earnings season with results after the closing bell on Tuesday. Google Inc , JPMorgan Chase & Co and Wells Fargo & Co are all slated to report later in the week.

Over the last several weeks, growth estimates have dropped markedly even as economic data has generally shown improved U.S. demand and the equity market has rallied.

On the first of October, first-quarter earnings were seen growing more than 10 percent. While estimates have dropped by more than two-thirds since then, the S&P 500 has climbed 27 percent, raising the question of whether the slowing growth has been priced into the market.

Tobias Levkovich, chief U.S. equity strategist at Citigroup, wrote that the season “may generate the next obstacle for investors,” saying they had become “too accustomed” to upside surprises.

LOWERING THE BAR

The second quarter got off to a weak start. The Standard & Poor’s 500 Index <.SPX> ended the quarter’s first week with a loss of 0.7 percent – its worst weekly performance since December. That was in sharp contrast to the rally on Monday – the quarter’s first trading day – when the S&P 500 ended at 1,418.90, its highest close since mid-May 2008.

At Thursday’s close, the Dow Jones industrial average <.DJI> was down 1.2 percent for the week, while the Nasdaq Composite Index <.IXIC> was down 0.4 percent.

It is possible that analysts have become too pessimistic.

Warnings have dominated the pre-earnings season. Of the 121 pre-announcements, 68 percent are negative ones, compared with 58 percent in the first quarter a year ago.

“The reduced expectations leave more room for upside surprises,” said Michael Mullaney, a portfolio manager who helps manage $9.5 billion at Fiduciary Trust Co in Boston.

However, there is still concern that the recent burst of economic growth will prove transitory – and that demand will sag after a warmer-than-usual winter in the United States.

“Earnings are expected to be weak this quarter, and if you strip out Apple Inc , the picture is even worse. That could be a big headwind, especially at a time when the macro environment is less than friendly.”

source from: yahoo

The Dow Jones industrial average slipped 14.61 points, or 0.11 percent, to end unofficially at 13,060.14. The Standard & Poor’s 500 Index dipped just 0.88 of a point, or 0.06 percent, to finish unofficially at 1,398.08. But the Nasdaq Composite Index rose 12.41 points, or 0.40 percent, to close unofficially at 3,080.50.

For the week, the Dow fell 1.15 percent, while the S&P 500 lost 0.74 percent in its worst weekly performance since December. The Nasdaq ended the week down 0.36 percent.

The U.S. stock market will be closed on Friday for Good Friday.

source from: yahoo

The first important event this week was the release of the Federal Open Market Committee monetary policy minutes on April 3. The minutes showed that most members of the Committee don’t think that additional stimulus is necessary. Such notion boosted the dollar, making it rise for the most part of the week.

Another important even, namely the release of non-farm payrolls, wasn’t as good for the US currency. Payrolls showed that employment growth was much smaller that was anticipated by market participants. The data led to the speculation that policy makers may still consider stimulating the economy.

As for the overseas news, it was a mixed week. On one hand, China’s manufacturing expanded, easing concerns about the economic slowdown in the Asian nation. On the other hand, Spain’s rising borrowing costs reignited worries about the European debt crisis. Markets paid more attention to the negative part, allowing the greenback to rally. The Japanese yen also profited from the resulting risk aversion, outperforming the dollar, but the greenback was higher against the majority of other most-traded currencies.

EUR/USD fell from 1.3360 to 1.3091 this week, while the weekly low of 1.3035 was the lowest price since March 15. USD/JPY slid from 83.01 to 81.59, reaching during the week the low of 81.34, the lowest since March 8. USD/CHF climbed from 0.9009 to 0.9165, while the weekly maximum of 0.9221 was the highest since March 16. AUD/USD fell from 1.0448 to 1.0306, touching the low of 1.0243 last seen in January 13.

source from: topforexnews